Ivy House share issue:

[Sue]

Just received this email - it would be so great if they got sufficient investment to re-instate the old front bar!

Dear All,

Yes, today is Share Deadline Eve. Many, many thanks to everyone who has already invested. The response to the share issue has been overwhelming. The original 100k target was reached over last weekend - we are now edging towards a total that could make all the difference when it comes to the financial feasibility of re-instating the old front bar. But we're a little way off yet! If you haven't yet pledged, but would like to do so, tomorrow is your last chance. Please note, however, that payments can still be made up to a week after share closure. And please do drop us a line if you've any questions re investment.

Many thanks

The Ivy House Team

[pipsky2008]

Why does there have to be a deadline if you need additional funds? Just curious

[Sue]

One thing that hasn't been mentioned yet on the thread is that Enterprise Investment Scheme (EIS) tax relief applies to community shares purchased.

You can download the share prospectus from the Ivy House website here:

http://www.ivyhousenunhead.com/

and find out about EIS here:

http://www.hmrc.gov.uk/eis/

[honeybee79]

*pipsky* - we put a deadline in place because we need to draw a line in the sand and establish exactly how much money we have so we can plan ahead. We received quite a bit of advice from the Plunkett Foundation on this point (they have advised on many community shares issues across the UK)and they quite rightly said not to let it roll on indefinitely because we would never know where we stood financially!

[Mattsoper]

The share issue is now closed and the latest total of contributions is an incredible ?144,500. Update on http://www.ivyhousenunhead.com says:

"Our Community Share Issue closed on 31st May 2013. At the time of writing, we have received ?144,500 of share orders, of which ?118,500 has been confirmed as paid. We had 53 new share orders in the last day alone.

We are overwhelmed by the level of support we have had from the local community; now our focus has to be on getting the work done to get the pub ready to welcome the public once more!"

[Sue]

Mattsoper Wrote:

-------------------------------------------------------

> The share issue is now closed and the latest total

> of contributions is an incredible ?144,500.

xxxxxx

That's absolutely amazing.

Can't wait till the pub is open again :)

[Heart108]

DJKillaQueen Wrote:

-------------------------------------------------------

> There are several church and community halls within spitting

> distance of the Ivy house that already provide

> cheap (and free) rehearsal and group space.

Most interesting - which ones did you have in mind? It would be useful to know.

[KylaKevin]

Tell me a price of one share?

[Peckhamrye]

Minimum purchase was 2 shares at ?100 each, but the share issue has closed now.

[Cyclemonkey]

Hey guys - brilliant news you've reached your target! Any idea when the shares will actually be sent to people who have brought them?

[honeybee79]

Cyclemonkey - Thanks! We're going to issue statements of account to our shareholders over the coming weeks.

[Jimi Henrdrix07]

So did you get enough shares sold then to buy the pub for the community?

[Sue]

Jimi Henrdrix07 Wrote:

-------------------------------------------------------

> So did you get enough shares sold then to buy the

> pub for the community?

xxxxxx

Eh? The pub had already been bought.

http://www.ivyhousenunhead.com/

[honeybee79]

Yes, the pub had already been bought! We bought the freehold in March. The community share issue was to help us raise working capital to get ready to trade again, plus give us a chance to reinstate the second front bar.

We set a target of ?100,000 for the share issue and we're delighted to have exceeded that!

[DulwichFox]

So if the Freehold was already purchased back in March..?

And Capital was raised to enable trading to commence...???

It would seem to me that "Investors" do not actually own any part of the Property. i.e. The Ivy House.

What do they have shares in.. ?

DulwichFox.

[Sue]

Fox, various links have already been given on this thread explaining things.

Click on them and read, maybe?

[DulwichFox]

Sue Wrote:

-------------------------------------------------------

> Fox, various links have already been given on this

> thread explaining things.

>

> Click on them and read, maybe?

Have read them.. They make no sense to me..

Fox.

[Peckhamrye]

We have shares in the business.

[DJKillaQueen]

My guess would be Fox that the shares are a part of the overall investment and I'm guessing dividends would be paid on annual profits, if there are any??? It's not clear to me though what percentage of profit would be given over to dividends and as honeybee writes 'We're going to issue statements of account to our shareholders over the coming weeks' the status of dividends hasn't been revealed to shareholders as yet.

But I don't think many of those that have bought shares are too bothered by this anyway. The sentiment seems to be one of supporting the venture and giving it a chance over seeking personal investment gain.

[honeybee79]

Dulwich Fox and DJKQ ? your confusion in relation to shares, shared ownership and interest payments on shares has already been addressed by me and others earlier in the thread.

For clarity: our community shares carry voting rights, part ownership and the right to an interest payment on shares in the event of sufficient distributable profits. So what Sue says earlier in the thread is correct - a shareholder owns part of Ivy House Community Pub Limited and Ivy House Community Pub Limited is the registered owner of the freehold. The date on which the freehold was purchased is irrelevant.

The position in relation to interest payments on shares has been explained to potential shareholders in our share prospectus.

To the best of my knowledge, neither of you - Dulwich Fox or DJKQ - are shareholders and thus this information is of limited use to you, though I am happy to answer any further questions if you have developed an interest in supporting the project.

[DulwichFox]

Well I was a regular in the 70's.

Will definately pay a visit to see what has become of the place...

Just hope the old features remain.

Would hate to see the place destroyed by by removing anything that resembles wood as the Clock House has done.

Foxy

[honeybee79]

*DulwichFox* - the building is Grade II listed and we campaigned to save it in order to protect it's lovely historic interior. We will not be changing the original features!

[DJKillaQueen]

Given my post above yours I think it is clear I DO understand what shareholders get honeybee. So please refrain from describing my understanding as confused at least (there is no evidence of that on this or any other thread). And as you rightly say the prospectus clearly explains how unlikely it is that any shareholder will see a return on their investment, and how any annual interest (tbd at an AGM) won't be more than 5% above the base lending rate and subject to tax. See? I do get it!

My only discussion has been to question the projected profit levels of the business plan anyway...a valid discussion point (based on the previous history of the venue), and one to which only time will show the answer. And that doesn't show lack of support for the venue, juat a query about what kind of investment it would be (highly relevant in a share offer scheme of things).

I do think the revenue estimates are optimistic (especially on food) and am left even less confident by the attitude of those who dreamt it up in their attitude to questions regarding them. But that is just my opinion and one on which I would be more than happy to be proved wrong a year down the line. I think it's a noble and brave idea, and it is my local pub and I would love to see it back open, but I just think that it's a pub that has struggled for a long time now and I don't see how suddenly, there is going to be the required custom to meet these targets. But like we have all said, time will tell.

[DulwichFox]

Some investors suggesting they are not in this for profit.

They seem to be investing out of sentimental attatchment to restore a previously failed business.

No business can survive just on ANY level of sentiment..

Hundreds of Public Houses are closing every month.

It is probably one of the worst times to start a new business venture.

One of the most important questions when opening any business..

"Where will my customers come from."? Like day in, day out.

That really would be MY main concern...

Even pubs on Lordship Lane are empty on week nights.

But then they 200+ people in at the week-ends.

DulwichFox

[honeybee79]

Well, let's see where we're at in a year's time. As I have said before, none of us would have worked so hard to save the building and our funders would not have funded us to do so, unless we all thought it was a viable business and could thrive given hard work. I have explained the competitive advantages of the business model elsewhere on this thread. It appears we're just going over old ground here so I guess we should agree to disagree and see how things unfold!